The Job Creation Law and Halal Certification: Practical Consequences for Business Actors

Law Number 6 of 2023 on the Enactment of the Job Creation Perppu into Law brings changes to the halal product assurance regime. These changes affect Law 33/2014 on Halal Product Assurance. For business actors, there are three things to understand: simplification of the certification process, the halal declaration scheme for UMK, and the presence of the Halal Product Fatwa Committee.

Simplification of the certification process

Law 6/2023 simplifies the halal certification process. This simplification does not mean the certification obligation disappears. The obligation remains, but the pathway is made more concise. Business actors must still meet halal requirements; only the administrative and inspection stages are adjusted.

The practical consequence: business actors need to ensure their documents and systems are in order from the start. Simplifying the process does not remove the need for evidence that ingredients, processes, and products are halal. Rather, with a more concise process, internal readiness becomes the main determining factor.

The halal declaration scheme for UMK

Law 6/2023 introduces a halal declaration (self-declare) scheme for micro and small enterprises. This scheme is intended for UMK with low-risk products. This means not all UMK can automatically use this pathway. There are criteria that must be met, especially regarding the type of product and the ingredients used.

For UMK, this scheme opens a more affordable path. However, responsibility remains. A halal declaration is not merely a form. Business actors must be able to show that the ingredients used do not contain critical points and that their production process is not contaminated.

Some ingredients that need to be checked in UMK products include:

• Flavoring: the solvent is often alcohol, and the base may be animal-derived.
• Animal fat or shortening: lard from pigs is absolutely haram; shortening from beef fat must have its halal certificate verified.
• Mechanically separated meat (MSM): at risk of being a mixture of various types of animals, common in sausages, nuggets, and economically priced meatballs.

If a UMK product uses these ingredients without halal assurance, the self-declare pathway is not appropriate. Business actors need to switch to regular certification.

Halal Product Fatwa Committee

Law 6/2023 paves the way for the Halal Product Fatwa Committee. The determination of halal status remains the authority of the fatwa institution. Halal certificates are only issued by BPJPH (the Halal Product Assurance Agency). Business actors need to understand this division of roles so as not to misunderstand the status of their products.

In practice, business actors do not determine the halal status of their products themselves. What business actors do is prepare a halal product assurance system, ensure that ingredients and processes meet the criteria, and then apply for certification through the appropriate pathway.

Link to SJPH criteria

Although the certification process is simplified, the reference for implementing the halal product assurance system on the business actor side still refers to the Decree of the Head of BPJPH Number 57 of 2021 on the Criteria for the Halal Product Assurance System, as amended by Kepka 20/2023. The criteria cover five things: commitment and responsibility, ingredients, halal product process, product, and monitoring and evaluation.

Consequently, business actors who want to take advantage of the process simplification must still build these five criteria. There is no shortcut for the ingredients and process parts. This is where business readiness is tested.

What business actors need to prepare

There are several practical steps that can be taken:

1. Map all ingredients used, including additives and flavorings.
2. Request supporting documents from suppliers, such as halal certificates for ingredients.
3. Separate production lines if there are ingredients whose status is unclear.
4. Appoint personnel to run the halal product assurance system.
5. Determine the appropriate certification pathway: self-declare for low-risk UMK, or regular for others.

These steps help business actors adapt to regulatory changes without compromising compliance with halal requirements.

Conclusion

Law 6/2023 changes the way business actors handle halal certification, but does not change the basic principle: ingredients and processes must be clear. For those who want to tidy up their halal product assurance system readiness, the SJPH platform from IndoHalal.id can help manage SJPH criteria in one application, from halal policy, ingredient registry, critical points, to internal audit.